Valad Europe has acquired The Royals shopping centre in Southend on Sea, Essex, from Orchard Street Investment Management for £33.4m – an 8.5% yield.
The purchase was completed on behalf of the Valad European Diversified Fund.
The 285,000 sq ft shopping centre is anchored by Debenhams, Primark, TK Maxx, Boots and Poundland, with 23 other shops and a 450-space car park. Some 92% of the retailers are major national brands and the centre has a 27-year average weighted unexpired lease term.
The Valad European Diversified Fund invests in core-plus and value-add assets in the UK and Germany with individual lot sizes between £5m and £35m. The fund will also invest in small to medium-sized portfolios.
David Kirkby, Valad Europe’s chief investment officer, said: “We launched VEDF to take advantage of an anticipated narrowing of prime-secondary spreads in the UK and Germany over the course of the fund’s life. This acquisition follows the recent purchases in the UK of three office assets at Wexham Springs and a Wickes retail warehouse in Aintree.
“In addition, we have a strong pipeline of deals with more than £50m in solicitors’ hands in the UK and Germany and we are actively seeking additional suitable acquisitions in these markets. The fund’s initial acquisitions in the UK are typical of the type of office and retail assets we are targeting, while in Germany we are looking for offices in the top and second-tier cities, selected retail assets and nationwide distribution warehouses.”
annabel.dixon@estatesgazette.com
